Real estate firm Godrej Properties is planning to invest Rs 400 crore to acquire around 10 per cent stake in DB Realty and will also set up a Rs 600 crore equal joint platform to develop slum redevelopment projects.
Mumbai-based Godrej Properties, one of the leading developers in the country, plans to invest Rs 300 crore in the joint platform, which will take its total investment to Rs 700 crore.
In an interview with PTI, Godrej Properties Executive Chairman Pirojsha Godrej said the company’s board has approved investments in DB Realty.
“We will be investing about Rs 400 crore in DB Realty for around 10 per cent stake through issue of warrants,” Pirojsha said.
Godrej Properties will subscribe to warrants convertible into equity shares.
Stating that DB Realty has a strong capability of executing slum redevelopment projects, he said the company would enter into this new segment that has huge opportunities.
“We will have a strategic partnership with DB Realty and will jointly set up a platform of Rs 600 crore,” said Pirojsha.
Godrej Properties and DB Realty will invest Rs 300 crore each into a joint platform for redevelopment projects, Pirojsha said.
Pirojsha said the company’s total investment would be around Rs 700 crore.
According to a regulatory filing, the board granted its approval to evaluate a potential investment in DB Realty Ltd in the form of warrants convertible into equity shares and the setting up of a special purpose vehicle as a joint venture with DB Realty to undertake slum rehabilitation and MHADA (Maharashtra Housing and Area Development Authority) redevelopment projects.
Godrej Properties has a major presence in Mumbai region, Pune, Bengaluru and Delhi-NCR.
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